Egypt president hopes Schalit issue resolved soon

Israeli President Shimon Peres is seen during a press conference with Egyptian President Hosni Mubarak, not seen, at the Presidential palace in Cairo, Egypt, Tuesday, July 7, 2009. An Israeli soldier being held in Gaza by Hamas militants is in good condition, said Egyptian President Hosni Mubarak, who said he hopes the issue of the soldier's release will be resolved soon. (AP Photo/Amr Nabil)
— AP

Israeli President Shimon Peres is seen during a press conference with Egyptian President Hosni Mubarak, not seen, at the Presidential palace in Cairo, Egypt, Tuesday, July 7, 2009. An Israeli soldier being held in Gaza by Hamas militants is in good condition, said Egyptian President Hosni Mubarak, who said he hopes the issue of the soldier's release will be resolved soon. (AP Photo/Amr Nabil)
/ AP

CAIRO 
An Israeli soldier being held in Gaza by Hamas militants is alive and in good condition, Egyptian President Hosni Mubarak said Tuesday, adding that he hopes the soldier will be released soon.

Sgt. Gilad Schalit has been held by Hamas-allied militants since being captured more than three years ago in a cross-border raid from Gaza.

The 22-year-old soldier has not been seen since, and Hamas has prevented the Red Cross from visiting him. Egypt has been mediating attempts to arrange a swap of hundreds of Palestinian prisoners, including militants involved in deadly attacks, for the soldier.

Speaking at a news conference with visiting Israeli President Shimon Peres, Mubarak said that negotiations to secure his release are continuing.

"Schalit is in good condition. I hope that in the coming period, not in a long time, the Schalit issue will be closed," he said.

Peres' visit was designed to discuss efforts to free Schalit as well as ways to promote a regional peace agreement between Israel and its Arab neighbors. Egypt and Jordan are the only Arab nations with peace agreements with Israel.

Both Mubarak and Peres emphasized that there is a good opportunity now for peace with the Palestinians.

"The differences between us are not that great that they cannot be overcome," Peres said. "We cannot miss this opportunity."

Mubarak said the Palestinian issue will continue to be the top priority for Egypt and the Arab world, and said Israel must stop settlement construction in the West Bank and resume peace talks toward the establishment of a Palestinian state.

Israel's continued construction in settlements on lands claimed by the Palestinians is the focus of a disagreement straining ties with the U.S.

Peres' visit was his first to Egypt since a new, conservative government took office in Israel.

The role of the presidency in Israel is largely ceremonial. But Peres' stature as a Nobel winner and Israel's elder statesman, along with the difficult reputation of Israeli Foreign Minister Avigdor Lieberman, gave his visit greater diplomatic significance.

With the blessing of Prime Minister Benjamin Netanyahu, Peres has been meeting overseas with foreign leaders in recent months in an attempt to soften the new government's image and express its desire to pursue peace efforts.

Last month, in a move at least partly aimed at easing tensions with Washington, Netanyahu expressed support for the first time for the creation of a Palestinian state. But the Palestinians have rejected Netanyahu's conditions, namely that such a state would have to be demilitarized and recognize Israel as the state of the Jewish people. They have also said they will not resume negotiations until Israel halt's its settlement construction.

Speaking at the presidential palace in Cairo, Peres insisted that following Netanyahu's speech the Israeli government was firmly committed to the creation of a Palestinian state.

"The formal position of the Israeli government is a solution of two states for two people: Palestine will be an Arab state and Israel will be a Jewish state," he said. "Israel has no intention to rule over the Palestinian people. We have no intention to confiscate land, and we have no intention to build new settlements."

He did not address the issue of building within existing settlements, which has been the key point of contention between Israel and the United States. The Obama administration has been pushing for a freeze on all settlement building while the Israeli government wants to continue building in existing settlements to allow for growing families.